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In the past quarter, Office 365 subscription sales contributed to a significant portion of Microsoft’s overall sales for Office products.
Microsoft announced a significant milestone for Office 365 in that it surpassed traditional Office products in total revenue. Microsoft CFO Amy Hood reports that profits from both Office 365 and traditional Office rose 5% YoY to over $277 million, and that Office 365 sales made up the majority of the over sum.
Hood and others believe this leap in sales is due to Office 365’s cloud computing capabilities that are presenting new opportunities to both customers and businesses in how they communicate and collaborate on projects. The subscription-as-a-service business model is being adopted by many other software providers like Adobe, who now offers its various programs under the Creative Cloud umbrella. And like Adobe, Microsoft offers more services and feature updates as they become available.
The benefits of subscribing to Office 365 has also outpaced the initial doubts many users had at the beginning such as not owning the software outright or dealing with another subscription. However, the advantage of working in the cloud and staying up to date at all times is an alluring concept that many people could not ignore, even in the home consumer market.
